For the past few months, Sunshine Painting Sdn Bhd has been evaluating two alternatives; the purchase of an automatic painting system or a semi-automatic painting system for a car body paint process. Two person will operate the automatic painting machine. However, because of manual material handling, the semi-automatic painting system require four workers to operate the system. Table 4 shows the system information. The company estimate production output is 1,600 units per year with expected rate of return of 12% per year. Evaluate this option considering with suitable graph for recommendation to the company whether to purchase an automatic or a semi-automatic painting system considering Annual Worth Analysis. Table 4: System Information SEMI-AUTOMATIC AUTOMATIC SYSTEM SYSTEM First Cost, RM 50, 000 25,000 Salvage, RM 9,000 4,000 Life, years 10 5 Labour Cost, RM per hour 30 20 Output, units per hour 12 Maintenance Cost, RM per 4,000 first year and increase 1,000 every year 3,000 year

For the past few months, Sunshine Painting Sdn Bhd has been evaluating two alternatives; the purchase of an automatic painting system or a semi-automatic painting system for a car body paint process. Two person will operate the automatic painting machine. However, because of manual material handling, the semi-automatic painting system require four workers to operate the system. Table 4 shows the system information. The company estimate production output is 1,600 units per year with expected rate of return of 12% per year. Evaluate this option considering with suitable graph for recommendation to the company whether to purchase an automatic or a semi-automatic painting system considering Annual Worth Analysis. Table 4: System Information SEMI-AUTOMATIC AUTOMATIC SYSTEM SYSTEM First Cost, RM 50, 000 25,000 Salvage, RM 9,000 4,000 Life, years 10 5 Labour Cost, RM per hour 30 20 Output, units per hour 12 Maintenance Cost, RM per 4,000 first year and increase 1,000 every year 3,000 year

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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